Looks like Google have finally clarified the issue with hidden text on your website and whether your site will be penalised for it.
Like most of Google's ideology, as long as it benefits users and is not an attempt to fool search egines then it is okay to hide text using CSS techniques.
An example of this could be using the display:none element to hide answers in a FAQ list.
SEO Roundtable has more info on this and other search engine optimisation advice - we regularly visit the site for SEO news and views.
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