I wouldn't worry about it. I currently work with a BSN who was prior Army who also got a reduction in rank. The only reason I know about this is because he told me while we were talking about service. On all the applications I've ever filled out, the only thing they actually care for is the condition of discharge. What you choose to disclose after that is up to you. From what I've seen, the only time people really care much about your condition of discharge is in the government sector. If you have an honorable discharge (and you have a good reenlistment code) then you aren't likely have problems getting a government job either. Speed-bumps in your military career matter far less than its final condition. You're good.