This code defines the output for <li> in version 4.1. I researched this to figure out how to override the ID and classes that WP assigns to menu items contained in an <li>. One solution is to write your own walker to override this. Another is to simply delete the output parameters in line 15 (although this is a bad idea). See wp-includes/nav-men…

WP Output for <li>

		/**
		 * Filter the ID applied to a menu item's list item element.
		 *
		 * @since 3.0.1
		 * @since 4.1.0 The `$depth` parameter was added.
		 *
		 * @param string $menu_id The ID that is applied to the menu item's `<li>` element.
		 * @param object $item    The current menu item.
		 * @param array  $args    An array of {@see wp_nav_menu()} arguments.
		 * @param int    $depth   Depth of menu item. Used for padding.
		 */
		$id = apply_filters( 'nav_menu_item_id', 'menu-item-'. $item->ID, $item, $args, $depth );
		$id = $id ? ' id="' . esc_attr( $id ) . '"' : '';

		$output .= $indent . '<li' . $id . $class_names .'>';

		$atts = array();
		$atts['title']  = ! empty( $item->attr_title ) ? $item->attr_title : '';
		$atts['target'] = ! empty( $item->target )     ? $item->target     : '';
		$atts['rel']    = ! empty( $item->xfn )        ? $item->xfn        : '';
		$atts['href']   = ! empty( $item->url )        ? $item->url        : '';