Lipids are composed of carbon, hydrogen, and oxygen and include fats, oils, phospholipids, and steroids. They are not water soluble and are digested in the mouth, stomach, and small intestine by lingual, gastric, and pancreatic lipases. In the small intestine, bile salts emulsify lipids into small droplets for further digestion by pancreatic lipase into fatty acids, monoglycerides, and glycerol, which are then absorbed. Undigested fats in the stool is known as steatorrhea.