<PAGE>   1
                                                                    Exhibit 99.2

                          INDEPENDENT AUDITORS' REPORT

To the Partners of Loral/Qualcomm Satellite Services, L.P.:

     We have audited the accompanying balance sheets of Loral/Qualcomm Satellite
Services, L.P. (a General Partner of Globalstar, L.P.) as of December 31, 1999
and 1998. These balance sheets are the responsibility of the Partnerships'
management. Our responsibility is to express an opinion on these balance sheets
based on our audits.

     We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the balance sheets are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the balance sheets. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall balance sheet presentation. We
believe that our audits of the balance sheets provide a reasonable basis for our
opinion.

     In our opinion, such balance sheets present fairly, in all material
respects, the financial position of Loral/Qualcomm Satellite Services, L.P. as
of December 31, 1999 and 1998 in conformity with generally accepted accounting
principles.

DELOITTE & TOUCHE LLP

San Jose, California
February 22, 2000
<PAGE>   2
                    LORAL/QUALCOMM SATELLITE SERVICES, L.P.
                    (A GENERAL PARTNER OF GLOBALSTAR, L.P.)

                                 BALANCE SHEETS
                                 (IN THOUSANDS)

<TABLE>
                                                          December 31,   December 31,
                                                              1999           1998
                                                          -----------    ------------
<S>                                                       <C>            <C>

ASSETS:

Investment in Globalstar, L.P. .........................  $ --           $ --
                                                          -----------    ------------
Total assets ...........................................  $ --           $ --
                                                          ===========    ============

PARTNERS' CAPITAL:
Partnership interests (18,000 interests outstanding) .... $ --           $ --
                                                          -----------    ------------
Total partners' capital ................................. $ --           $ --
                                                          ===========    ============

</TABLE>

See notes to balance sheets.


                                       2
<PAGE>   3
                    LORAL/QUALCOMM SATELLITE SERVICES, L.P.
                    (A GENERAL PARTNER OF GLOBALSTAR, L.P.)

                            NOTES TO BALANCE SHEETS

1. ORGANIZATION AND BACKGROUND

     Loral/Qualcomm Satellite Services, L.P. ("LQSS"), was formed in November
1993 as a Delaware limited partnership with a December 31 fiscal year end. The
general partner of LQSS is Loral/Qualcomm Partnership, L.P. ("LQP"), a limited
partnership whose general partner is Loral General Partner, Inc. ("LGP"), a
subsidiary of Loral Space & Communications Ltd., a Bermuda company ("Loral") and
whose limited partners include a subsidiary of QUALCOMM Incorporated
("Qualcomm").

     LQSS's only activity is acting as the managing general partner of
Globalstar, a development stage limited partnership as of December 31, 1999,
which in January 2000 began operating a low-earth orbit satellite-based
wireless digital telecommunications system (the "Globalstar System"). The
Globalstar System's world-wide coverage is designed to enable its service
providers to extend modern telecommunications services to millions of people
who currently lack basic telephone service and to enhance wireless
communications in areas underserved or not served by existing or future
cellular systems, providing a telecommunications solution in parts of the world
where the build-out of terrestrial systems cannot be economically justified.

     At December 31, 1999, LQSS held a 30.1% interest in Globalstar's
outstanding ordinary partnership interests. As LQSS's investment in Globalstar
is LQSS's only asset, LQSS is dependent upon Globalstar's success and
achievement of profitable operations for the recovery of its investment.
Globalstar is a development stage limited partnership which may encounter
problems, delays and expenses, many of which may be beyond Globalstar's
control. These may include, but are not limited to, in-orbit failures, problems
related to technical development of the system, testing, regulatory compliance,
having user terminals available in sufficient quantities, the competitive and
regulatory environment in which Globalstar will operate, marketing problems and
costs and expenses that may exceed current estimates. There can be no assurance
that substantial delays in any of the foregoing matters would not delay
Globalstar's achievement of profitable


                                       3

<PAGE>   4
                    LORAL/QUALCOMM SATELLITE SERVICES, L.P.
                    (A GENERAL PARTNER OF GLOBALSTAR, L.P.)

                     NOTES TO BALANCE SHEETS -- (CONTINUED)


operations and affect the recoverability of LQSS's investment. All expenses
necessary to maintain LQSS's operations are borne by Globalstar.

     While it is not anticipated that LQSS will incur any direct obligations
for borrowed money or any other liabilities, it will, as a general partner of
Globalstar, be jointly and severally liable for all liabilities of Globalstar
other than those that are by contract made expressly non-recourse to
Globalstar's general partners or otherwise guaranteed. Limited partners in LQSS
do not, in general, have such joint and several liability.

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INVESTMENT IN GLOBALSTAR, L.P.

     LQSS accounts for its investment in Globalstar ordinary partnership
interests on the equity basis, recognizing its allocated share of net loss for
each period since its initial investment in March 1994. The difference between
LQSS's initial investment in Globalstar and its interest in Globalstar's
ordinary partnership capital, at that time, is attributable to certain
intangible assets contributed to Globalstar for development of the Globalstar
System; this difference ($87.5 million at December 31, 1999) will be accreted
by LQSS beginning in 2000, on a straight-line basis over 20 years upon
Globalstar's commencement of commercial services. During 1995, LQSS's
investment in Globalstar was reduced to zero. Accordingly, LQSS has
discontinued providing for its allocated share of Globalstar's net losses, and
will recognize a liability as a result of its general partner status in
Globalstar only in the event that Globalstar's losses result in an aggregate
ordinary partners' capital deficiency. At December 31, 1999, suspended losses
representing LQSS's unrecognized equity in Globalstar's net losses aggregated
approximately $179,457,000.

USE OF ESTIMATES IN PREPARATION OF FINANCIAL STATEMENTS

     The preparation of financial statements in conformity with generally
accepted  accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the amounts of expenses reported for the period. Actual results
could differ from estimates.

NET (LOSS) INCOME ALLOCATION

     The partnership agreements of LQSS and Globalstar provide that net losses
of each partnership are allocated among the partners with positive adjusted
capital account balances in accordance with their relative percentage interests
until the adjusted capital account balances of all partners are zero. Any
further net loss is allocated to the general partner.

     Net income of each partnership is allocated among the partners in
proportion to, and to the extent of, distributions made to the partners out of
receipts for the period, as defined, then in proportion to and to the extent of
negative adjusted capital account balances and then in accordance with
percentage interests.

                                       4
<PAGE>   5
                    LORAL/QUALCOMM SATELLITE SERVICES, L.P.
                    (A GENERAL PARTNER OF GLOBALSTAR, L.P.)

                     NOTES TO BALANCE SHEETS - (CONTINUED)

     Under the terms of the partnership agreements, adjusted partners' capital
accounts are calculated in accordance with the principles of U.S. Treasury
Regulations governing the allocation of taxable income and loss including
adjustments to reflect the fair market value (including intangibles) of
partnership assets upon certain capital transactions including a sale of
partnership interests. Such adjustments are not permitted under generally
accepted accounting principles and, accordingly, are not reflected in the
accompanying financial statements.

INCOME TAXES

     LQSS was organized as a Delaware limited partnership. As such, no income
tax provision (benefit) is included in the accompanying financial statements
since U.S. income taxes are the responsibility of its partners. Generally,
taxable income (loss), deductions and credits of LQSS will be passed
proportionately through to its partners.

3.   INVESTMENT IN GLOBALSTAR

     On March 23, 1994, LQSS entered into a subscription agreement to acquire
18,000,000 general ordinary partnership interests in Globalstar for
$50,000,000. LQSS paid $38,691,000 in cash during 1994 and 1995 and received a
credit of $11,309,000 against its capital subscription, as compensation for
certain costs incurred by the partners of its general partner, LQP. As of
December 31, 1999, Globalstar had 39,906,823 general and 19,937,500 limited
ordinary partnership interests outstanding.

     On February 14, 1995, GTL completed an initial public offering of
40,000,000 shares of common stock, resulting in net proceeds of $185,750,000,
which were used to purchase 10,000,000 ordinary general partnership interests
in Globalstar. LQSS and the other partners in Globalstar have the right to
exchange their ordinary partnership interests into shares of GTL common stock
on an approximate one-for-four basis following the Full Coverage Date, as
defined, of the Globalstar System and after two consecutive quarters of
positive net income, subject to certain annual limitations. GTL has reserved
approximately 153.7 million shares for this purpose.



                                       5
<PAGE>   6
                    LORAL/QUALCOMM SATELLITE SERVICES, L.P.
                    (A GENERAL PARTNER OF GLOBALSTAR, L.P.)
                     NOTES TO BALANCE SHEETS -- (CONTINUED)

     On December 15, 1995, Globalstar entered into a $250 million credit
agreement (the "250 Million Credit Agreement") with a group of banks. Lockheed
Martin, Qualcomm, SS/L and another Globalstar partner have guaranteed $206.3
million, $21.9 million, $11.7 million and $10.1 million of the Globalstar Credit
Agreement, respectively. In addition, Loral agreed to indemnify Lockheed Martin
for any liability in excess of $150 million.


     On August 5, 1999, Globalstar entered into a $500 million credit agreement
("$500 Million Credit Agreement") with a group of banks for the build-out of the
Globalstar System of which $400 million was outstanding as of December 31, 1999.
The credit facility is guaranteed by Loral SatCom Ltd. and Loral Satellite,
Inc., wholly owned subsidiaries of Loral. The guarantee is secured by the pledge
of certain assets of Loral and its subsidiaries, including the stock of the
guarantors and the Telstar 6 and Telstar 7 satellites. In consideration for the
guarantee, valued at $141.1 million, Loral and certain Loral subsidiaries
received warrants to purchase an aggregate of 3,450,000 Globalstar partnership
interests at an exercise price of $91.00 per partnership interest.


     Pursuant to other equity arrangements entered into by Globalstar (in which
LQSS is not a participant), at December 31, 1999, Globalstar has reserved
additional ordinary partnership interests for issuance for: exercise of warrants
to purchase GTL common stock issued in connection with Globalstar's 11-3/8%
Senior Notes due 2004 (976,631 interests), exercise of a warrant issued to China
Telecom to purchase Globalstar ordinary partnership interests (937,500
interests), warrants issued to Loral as consideration for the guarantee of
Globalstar's $500 Million Credit Agreement (3,450,000 interests), conversion of
outstanding 8% and 9% convertible redeemable preferred partnership interests
(3,760,632 interests), and interests reserved for issuance under GTL's 1994
stock option plan (1,160,950 interests).

     In addition, Qualcomm has agreed to provide Globalstar $500 million of
vendor financing (for which the terms of $400 million are still being
finalized). In connection with the agreement, Qualcomm is expected to receive a
number of warrants to purchase Globalstar partnership interests comparable to
those received by Loral pursuant to Loral's guarantee of Globalstar's $500
Million Credit Agreement. Globalstar may also elect to make the preferred
distribution on its outstanding 8% and 9% convertible redeemable preferred
partnership interests in ordinary partnership interests versus cash.

     On February 1, 2000, GTL sold 8,050,000 shares of common stock in a public
offering. The purchase price was $35 per share, yielding net proceeds of
approximately $268.5 million to GTL. GTL used the proceeds to purchase 1,987,654
ordinary partnership interests in Globalstar. This issuance of ordinary
partnership interests diluted and the issuance and exercise or conversion of any
of the above securities would further dilute LQSS's interest in Globalstar's
ordinary partnership interests.
<PAGE>   7
                    LORAL/QUALCOMM SATELLITE SERVICES, L.P.
                    (A GENERAL PARTNER OF GLOBALSTAR, L.P.)
                     NOTES TO BALANCE SHEETS - (CONTINUED)

4. PARTNERS' CAPITAL

     On March 23, 1994, LQSS received capital subscriptions of $50,000,000 for
a 42.2% general partnership interest and 57.8% limited partnership interests,
representing all issued and outstanding partnership interests. Of these capital
subscriptions, $38,691,000 was received in cash during 1994 and 1995 and a
capital subscription credit of $11,309,000 was issued to the general and
limited partners as compensation for expenditures incurred by Loral and
Qualcomm from January 1, 1993 through March 22, 1994, relating to the Globalstar
System. LQSS was in turn granted a credit against its capital subscription
payable to Globalstar for the same amount.

5. RELATED PARTY TRANSACTIONS

GLOBALSTAR MANAGING PARTNER'S ALLOCATION

     Commencing with the initiation of Globalstar's services in the first
quarter of 2000, LQSS will receive a managing partner's allocation equal to 2.5%
of Globalstar's revenues up to $500 million, plus 3.5% of revenues in excess of
$500 million. This managing partner's allocation will be distributed to LQSS's
general partner, LQP. Should Globalstar incur a net loss in any year following
commencement of services, the allocation for that year will be reduced by 50%
and Globalstar will be reimbursed for allocation payments, if any, made in any
prior quarter of such year, sufficient to reduce the management allocation for
such year to 50%. No allocations have been received to date. The allocation may
be deferred (with interest 4% per annum) in any quarter in which Globalstar
would report negative cash flow from operations if the allocation were made.


                                       7