Yes, that's correct
Find the conductor size needed for 100% of the non-continuous load plus 125% of the continuous load (without any adjustments/corrections).
Then find the conductor size needed for 100% of the non-continuous load plus 100% of the continuous load, after any adjustments/corrections.
The larger size conductor is required.
Note, also, that the ampacity of the conductor after any adjustments/corrections must be properly protected per Art. 240.