Q: Dirty talks at work place

Maybe the title is not exactly right. Not at work, but in bars after work and at birthday party, my colleagues talk about sex! They seriously said penus...Guys and gals...I honestly don't know how to deal with it.

Who here have experience and how did you deal with it, laugh with others, or disgusted, either way it's going to unavoidably embarrous. I don't know what to do..

Or you gals just never mingle with Americans?